Waypoint is Here!

As I was reading a real estate blog, somehow I ended up at Waypoint Homes web site.  If you have been involved in real estate or read real estate news you probably have heard of their name mentioned.

The Chicago Tribune recently wrote:

The strategy of the 4-year-old company, formed by Brien, a former National Football League place-kicker who played for the Bears in 2005, and Colin Wiel, a former Boeing engineer, is to purchases single-family foreclosures in areas with a stable employment base and rent them, creating a stabilized, profitable portfolio for investors. Waypoint owns more than 1,800 rentals in California. It entered the Phoenix market in May.

After some quick sleuthing, they currently have 162 Active homes for rent in Southern California.  Let me say that again 162 homes for rent!!!

Could you imagine the team it takes to deal with 162 vacant houses at one? Break-ins, tenant phone calls, weed abatements, etc.

The active for rent listings ranged from: a high of $2,499 for a house in Corona on a golf course they paid $240,500 for; to a low of $1,249 for a house in Banning that they paid $50,100 for at the trustee sale. But everything seems to be priced $200-300 above “top dollar” for the market rents.

The typical for rent MLS description reads:

Waypoint Homes offers tenants a standard 12 month lease or our Lease Plus Rewards Program. The LPR program is a 24 month lease that allows residents in good standing to accrue up to $5,000 to apply toward the purchase of ANY home on the market at the end of their lease term or take 25% of that money in cash at move out!! Call for more details! Waypoint Homes has an A rating with the BBB.

Lease Plus Rewards – an Innovative Idea

I have heard for a while that Waypoint planned to use lease options to “juice” their rents.  The details of this program seem to be called Lease Plus Rewards.  It basically gives their occupant an incentive to stay longer and it also gives them a bigger security deposit in the event something bad happens.  They offer to refund 25% of the $5,000 but obviously if the house has any damage, or the landlord is short any rent they are going to subtract that from the refund.

Not all seems to be smooth sailing:  they advertise an A rating with the Better Business Bureau, but a search shows they have slipped to a B with 8 complaints in the last 6 months.

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4 Responses to “ Waypoint is Here! ”

  1. Chuck says:

    Steve,

    I thought you were running a lot of properties. This company does have a bunch of rentals. There is a picture of the staff of the company on their “About Us” page from the link you have above. There must be at least 100-200 people in that picture.

    That company is building some serious equity: especially when appreciation returns, inflation starts popping, + whatever equity they are capturing when they buy and rehab. Wow…

  2. Luis says:

    I am glad you posted about this because I have noticed the same “mega-company” movement here in Atlanta.

    As a matter of fact I just put a flip on the market and I got an offer from one of these companies. They made me an offer sight unseen, cash, with 21 day contingency. Which to me was crazy because I know that for what they offered me they cannot make money renting it out. Their proof of funds letter was like for $5million!

    Anyway, I wonder how they plan to keep up with so many rentals for which they are paying too much…

  3. cgabhart says:

    I saw the CEO speak at an event last year. They have some incredible systems in place that allows them to operate so many homes.

    It kind of makes my brain hurt thinking about the logistics of owning 1000+ homes…

    Good post

  4. ONCE A TENANT says:

    Waypoint Homes operates on scamming its customers. They pry on people loosing their homes to foreclosure, people who want to be home owners but have bad credit, or people who have prior eviction or have impossibilities going through the proper channel to rent a home. I was one of their first tenants, and I am guessing, a few of the ones that actually succeeded purchasing their home. I will tell you, I had to seek attorneys advice to complete my sales. Just when they knew I was up to buy, they came up with the next scam, which was supposedly an incentive to lock me and others into an additional two years lease, eating up my $7000.00 deposit plus the $5000.00 I had earned through the lease option $200.00 monthly credit, taking away that $200.00 monthly credit permanently and replacing it with some crap called $100.00 waypoints monthly,(which would not be given at all if you were a day late paying your rent). They offered a month rent free and that when the 2 years was up, we could buy whichever house we wanted. I refused, but others fell for it and are now having trouble. Waypoint Homes rents are higher than normal, and they refuses to repair anything and transfers literally all costs to tenants. Look at the number of complaints with the BBB, although they are supposed to have an A rating. I escaped with the home, but they tried to take it every which way they could. I am pretty sure I was one of the few; most of the original tenants could not deal with the problems, the fine print of the terms, or the scams that Waypoint kept coming up with. Yes, they are big, but maybe its because they are not paying anything to maintain the homes; the tenants are. And if they do pay, you will have to most likely pay for your own convenience, and have them settle for half of what it cost you, then they would credit it to your rent. I had a faulty breaker, which blew up all of my electronics. Almost a year into them dodging the issue, they finally settle with me for a credit on my rent for half of the cost of all of my electronics. The house was advertised as a two bathroom home, but only one bathroom could be used at a time for showers. And while showering, no water in the home, including the washer could be turned on; if so, someone will get scalded in the shower or the water will turn very cold. They told me, I had to deal with it. I decided to fix the problem but because of their need to get me out of the property, I waited until I bought. By the time we purchased the home, we figured out why they were trying so hard to get out of the agreement. They had refinanced the home to exactly what we were locked in to purchase it for, but the home had added $75,000 equity on. they came up with all sorts of scams but we prevailed. One more thing: initially, the company was named Golden Bears Property management. Six months into our lease, they changed names to Home Affordable Again. A year later, they changed their name to Waypoint Homes. The more they changed names, the more scams they came up with. Nightmare, and I was glad to escape with the home. I know there are people out there with more horrible stories. I have heard that some big businesses are big because they play dirty. In Waypoint Homes, I know this is true, They are big from scamming gullible people. Watch Out!!!

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